Shell reviewing Japanese refineries

Royal Dutch/Shell Group's Japanese refining unit, Showa Shell Sekiyu KK, is reviewing the operations of its five affiliated refineries in the hopes of boosting effiency. The streamlining plan, which Shell hopes to complete by September, includes combining two plants in Kawasaki-one owned by Showa Shell and one by subsidiary Toa Oil Co. Ltd. The plants have a combined capacity of 185,000 b/d and are already linked by a pipeline.

June 8, 1998

Royal Dutch/Shell Group's Japanese refining unit, Showa Shell Sekiyu KK, is reviewing the operations of its five affiliated refineries in the hopes of boosting effiency.

The streamlining plan, which Shell hopes to complete by September, includes combining two plants in Kawasaki-one owned by Showa Shell and one by subsidiary Toa Oil Co. Ltd. The plants have a combined capacity of 185,000 b/d and are already linked by a pipeline.

Showa Shell is also looking at boosting the capacity of its 40,000 b/d Niigata refinery, but it may close down the plant altogether, potentially saving it several billion yen.

Also subject to review are a 220,300 b/d refinery at Yokkaichi, operated by Showa Yokkaichi Sekiyu Co. Ltd., and a 120,000 b/d refinery at Yamaguchi, operated by Seibu Oil Co. Ltd.

The company says that the streamlining plan is essential if it is to maintain its competitive edge in an increasingly hostile business environment.